HomeMy WebLinkAbout03/15/1989 Donald K. Ratty, Chair
James H. Childs
Kevin McDermott
Staff: John Stinson
AGENDA
BUDGET AND FINANCE COMMITTEE
Wednesday, March 15, 1989
12: O0 Noon
City Manager's Conference Room
1. HOMELESS CENTER UPDATE - Denny Needham
2. INCREASE DEFERRED LOAN AMOUNT - George Gonzales
3. MID-YEAR BUDGET AMENDMENT
4. BINGO UPDATE
5. BAKERSFIELD COURTHOUSE RACQUETBALL UPDATE - Tim Gannon
6. ANIMAL CONTROL ORDINANCE
7. VOUCHERS
,· OADMINISTRATIVE REPORT
.~ .... Meeting Date:
March 15, 1989.
Agenda Section:
New Business
Agenda Item:
11. b.
TO: Honorable Mayor and City Council 'Approve___~d ~ /o,~
FROM: Gregory J. Klimko, Finance Director Department Head~/~~
DATE:
March
6, 1989 City Manager LJz~q~J-ff~J-(X~J~
RECOMMENDATION:
Motion to refer to Budget and Finance Committee. Group Vote.
BACKGROUND:
In accordance with the City Charter (Article IV, Section 41) the
City annually appoints an Independent Audit Firm to conduct an
audit of 'City financial records. The accounting firm of Peat
Marwick Main & Co. has completed the 1987-88 financial audit and
has expressed a desire to continue as City independent auditors for
a third year with an audit fee of $38,400. (1986-87 fee $35,200 -
1987-88 fee $35,200) ~- ~ --
In the past, the Council has expressed a desire to solicit audit pro-
posals approximately every three years. Traditionally, audit con-
tracts have been for a one-year period, with two one-year
extensions for as long as the work proved satisfactory. The con-
cept of providing extensions is necessary in order to promote effi-
ciency in the audit process as well as to achieve cost
effectiveness.
·
NB:5
ld
KPMG-Peat Marwick
Certified Public Accountants
Peet Mamvick Main & Co.
725 South Figueroa Street Telephone 213 972 4000 Telecopier 213 622 1217
Ins Angeles. CA 90017 Telex 6831572 PMMLA
Cable Address VERITATEM
March 3, 1989
The Mayor and City Council
City of Bakersfield, California '
Honorable Mayor and Members of the City Council:
This letter conf'Lrms our understanding of audit services to be provided by Peat Marwick
Main & Co. to the City of Bakersfield, California for the year ending June 30, 1989; In
addition, this letter serves as an update to our proposed compensation as discussed in our
original Proposal of Audit Services to the City of Bakersfield dated April 10, 1987.
Scope of Work
We will conduct our audits in accordance with generally accepted auditing standards, the
standards for financial and compliance audits contained in the Standards for Audit of
Governmental Oreanizations, Prom'ams. Activities, and Functions issued by the U.S.
General Accounting Office, the Sihgle Audit Act of 1984, and the provisions of OMB
Circular A-128, Audits of State and Local Governments. Such audits will be conducted
with the objective of expressing opinions on the following as of and for the year ending
June 30, 1989:
· Comprehensive Annual Financial Report
· Single Audit
· Community Redevelopment Agency of the City of Bakersfield
· Public Facilities Corporation of the City of Bakersfield
· Southeast Bakersfield Wastewater Treatment Consolidation Corporation, including
· Wastewater Treatment Management Plan Compliance Work
In conducting our audits, we will perform tests of the accounting records and such other
procedures as we consider necessary in the circumstances to form our opinions on the
financial statements~ We understand that all records, documentation, and information we
request in connection with our audits will be made available to us. It should be understood
that management has final responsibility for representations contained in the financial
statements.
Our audits are not to be designed to provide absolute assurance that there are. no
misstatements in the City's financial statements resulting from errors or irregularities. The
City's system of internal accounting control provides assurance, although not absolute
assurance, against the possibility of such errors and irregularities. In this regard, we will
furnish the City recommendations about the City's system of internal accounting control
that come to our attention during our audits. We Will also furnish our recommendations
about other aspects of the City's operations in which we observe opportunities for
improvement..
Peat Marwick
The Mayor and City Council
City of Bakersfield, California
March 3, 1989
2
Our original Proposal of Audit Services also included a proposal for continuation of audit
services for fiscal years 1990 and 1991. We are still committed to these option years at the
fees summarized as follows:
Comprehensive Annual Financial $20,000 $20,000 $21,000
Report
Single Audit 6,000. 6,000 7,000
Community Redevelopment Agency 6,000 6,000 6,500
of the City of Bakersfield '
Public Facilities Corporation of the' 5,000 5,000 5,500
City of Bakersfield
Southeast Bakersfield Wastewater 1,400 1,400 1,500
Treatment Consolidation Corporation ' ' ·
including Wastewater Treatment
Management Plan Compliiance Work
$38.400 $38~400 $41,600~
If this letter is acceptable to the City and the audit services outlined are in accordance with
the City's requirements, please sign the enclosed copy of this letter in the space provided
and return it to us.
We are looking forward to continue working with the City on this engagement.
Very truly yours,
PEAT MARWICK MAIN & CO.
Thomas W. Snow, Partner
TWS:sao
cc: W. Benson
Accepted:
City of Bakersfield